UAE to penalize companies offering disruptive ‘low’ prices under new competition law

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The Dubai skyline.

Companies offering “very low” prices that hurt the market will face penalties under the UAE’s new competition law announced on Thursday (July 11).

The Ministry of Economy announced that the new law prohibits companies from offering very low prices for production, transfer and marketing in order to hurt their market competitors.

According to the ministry, the new law defines the proper conduct of economic activities in the country to ensure fair and competitive practices for businesses, while protecting consumer rights.

The law also prohibits monopolistic approaches for all companies to protect consumers’ rights in the country. The law will also regulate mergers and acquisitions in the local market.

According to the ministry, it will conduct inspections as well as act on complaints from the public. Fines and penalties for violators are under review and waiting for Cabinet approval.

The new law is part of the Federal Decree Law promoting healthy competition in the market while combatting monopolistic practices as well as “harmful economic concentration of consumers in the UAE.”

The Competition Regulation Committee has been tasked to propose the general policy to apply the provisions of the law.

“Its articles address all conditions that may undermine, limit, prevent or restrict competition,” said Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy. ICA/Expat Media

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